The Wisconsin Elections Commission issued a statewide notice Tuesday warning residents that buying election-related contracts on Kalshi or Polymarket could disqualify them from voting in the same election. The bipartisan commission approved the notice following its July 9 meeting, where it unanimously passed a legal memorandum on prediction markets. Administrator Meagan Wolfe stated that voters cannot legally make a bet on an election and cast a ballot in that same election, citing Wisconsin Statute 6.03(2), which disqualifies any person holding a direct or indirect interest in a wager depending on an election's result. The warning comes amid an ongoing legal dispute between Wisconsin and the Commodity Futures Trading Commission, which sued the state in April to stop it from enforcing gambling laws against federally regulated exchanges offering election contracts.
Wisconsin Statute 6.03(2) Disqualifies Voters With Election Wagers
Wisconsin Statute 6.03(2) disqualifies a person from voting in any election in which they hold a direct or indirect interest in a wager depending on its result. A separate provision makes intentionally voting while unqualified a Class I felony. The restriction is election-specific and does not automatically remove a trader's eligibility to vote in unrelated contests. Commission lawyers concluded that the statute's broad reference to "any bet or wager" includes election contracts traded through modern prediction markets. They stated that someone who risks money and receives a payout if their forecast is correct could not truthfully deny having a financial wager on the result.
Instead of automatic ballot rejection, an affected voter could face an administrative challenge to their qualifications. This would require election officials to determine whether the person held a prohibited financial interest. A successful challenge could prevent the ballot from being cast and lead to a district attorney referral. Wolfe acknowledged that the commission cannot monitor who trades on prediction platforms, but said residents need to understand the possible consequences. Commissioner Ann Jacobs first publicized the issue in March and said she was unaware of any Wisconsin ballot previously challenged over election wagering.
Kalshi Calls Warning Unconstitutional and Threatens Legal Action
Kalshi disputed the commission's interpretation. Benjamin Freeman, who heads the company's elections division, wrote on X that the guidance was "blatantly unconstitutional and illegal" and that the commission was implying it would "literally disenfranchise voters who use Kalshi to trade elections." He said Kalshi has hundreds of thousands of users in Wisconsin alone and called the statement "active voter suppression."
Robert DeNault, Kalshi's head of enforcement and legal counsel, stated that election markets certified by the CFTC and available on federally regulated exchanges are legal. He wrote that Wisconsin hasn't challenged them and that the state should sue the CFTC rather than prosecute voters. He said the commission should retract the guidance "before courts are required to force them to do so." A Polymarket spokesperson said the company would address the commission's claims through the appropriate legal process. Both companies maintain that their products are tradable financial contracts rather than gambling.
CFTC Sued Wisconsin in April Over Prediction Market Ban
The voting dispute presents a different legal question, as Wisconsin is not directly ordering an exchange to remove election contracts. Instead, it is applying state voter-qualification rules to people with a financial interest in an election. That distinction sits at the center of Wisconsin's separate legal fight with the industry, after the CFTC sued the state in April to stop it from enforcing gambling laws against federally regulated exchanges. No court has yet determined whether federal commodities law or constitutional voting protections restrict Wisconsin's interpretation of its voter-qualification statute.
Jacobs said a potential case would more likely begin with a trader publicly discussing a position than with officials systematically obtaining customer records. Kalshi and Polymarket expand hundreds of midterm markets covering congressional, gubernatorial and primary races. Federal lawmakers have also sought restrictions on sports and election contracts, while reports of campaign staff trading around internal polling have intensified concerns about political-market integrity.
FAQ
What did the Wisconsin Elections Commission warn residents about on Tuesday?
The Wisconsin Elections Commission issued a statewide notice Tuesday warning that buying election-related contracts on Kalshi or Polymarket could disqualify residents from voting in the same election, based on Wisconsin Statute 6.03(2), which disqualifies persons with direct or indirect wager interests in an election's result.
How did Kalshi respond to Wisconsin's voter disqualification warning?
Kalshi's elections division head Benjamin Freeman called the guidance "blatantly unconstitutional and illegal" and termed it "active voter suppression." The company's legal counsel Robert DeNault stated that CFTC-certified election markets are legal and that Wisconsin should sue the CFTC rather than prosecute voters, threatening that courts may be required to force the commission to retract the guidance.
When did the CFTC sue Wisconsin over prediction markets?
The Commodity Futures Trading Commission sued Wisconsin in April to stop the state from enforcing gambling laws against federally regulated exchanges offering election contracts, a separate legal dispute from the voter-qualification issue raised in the commission's Tuesday notice.
